Explain Two Ways by Which the Federal Reserve System Can

question 36

Essay

Explain two ways by which the Federal Reserve System can increase the monetary base. Why is the effect of Federal Reserve actions on bank reserves less exact than the effect on the monetary base?

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Definitions:

Frontal Lobes

Sections of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Somatosensory Cortex

A region of the brain responsible for processing sensory information from various parts of the body, relating to touch, temperature, and pain.

Motor Cortex

An area of the cerebral cortex that plays a crucial role in the planning, control, and implementation of voluntary movements.

Association Areas

Regions of the brain that integrate information from different sensory inputs and are involved in higher mental functions like learning, thinking, and remembering.